We are bullish on paint sector despite (i) worst inflation that the industry faced since last 4 decades (ii) new players announcing aggressive capex (iii) valuation concerns due to rally in stock price. In this report, we present our observations on paint sector by studying data of last 26 years. Broadly, we expect paint sector to drive outperformance in revenue growth led by penetration, market share gains and new categories (waterproofing, adhesives etc). We expect gross margin and valuation multiples to sustain driven by pricing-power and fast growth opportunities. We recommend BUY on APNT (revised TP Rs 3,756, valued at 70x FY24E EPS) and BRGR...